Tuesday, November 29News That Matters
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Tag: insurers

Insurers did not follow 20% orders of ombudsman

Finance
(This story originally appeared in on Feb 13, 2021)Mumbai: Justice for insurance claimants takes a long time coming ever after winning an award from the ombudsman. A response to an activist’s query under the Right to Information (RTI) Act has shown that one in five awards announced by the insurance ombudsmen was pending at the end of FY20. The Insurance Regulatory and Development Authority of India (Irdai) has said that it has not taken any disciplinary action against any insurance company so far for not complying with the order of the ombudsman. The RTI query was filed by Jeetendra Ghadge, who took an interest in the matter after his own experience with the ombudsman. He managed to get his order implemented within two months with help from the ombudsman’s office, but was surprised to se...

Government’s move to relax FDI limit for insurance a big boost for small insurers

Finance
MUMBAI: India’s move to further liberalize limits for insurance companies raising capital from foreign players will provide a major boost to dozens of insurers in the way of fresh fund-raising avenues while paving way for top global insurers to enter India’s highly underpenetrated insurance sector. After years of deliberation, the Indian government has increased the Foreign Direct Investment (FDI) limit in insurance companies to 74% against the current 49%, Finance Minister Nirmala Sitharaman announced on Monday in the Union Budget of 21-22 albeit some “safeguards”. Prominent industry CEOs and experts claim that the move will provide a fillip to an industry which has not lived up to expectations in providing coverage to a large chunk of the country's over 130 crore population over the la...
Insurers must pay small firms for Covid lockdown losses

Insurers must pay small firms for Covid lockdown losses

Business
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Facility for obtaining electronic customer consent extended till March 2021 for life insurers

Facility for obtaining electronic customer consent extended till March 2021 for life insurers

Finance
MUMBAI: Regulator IRDAI has extended the facility for life insurers to obtain the consent of prospective policy holders electronically by three months till March 31, 2021. In view of the disruption of normal business activity following outbreak of the coronavirus pandemic, IRDAI in August, on an experimental basis, had permitted life insurers to obtain consent of customers for pure risk products (policies which do not involve any savings element) electronically till December 31. On a review of the working of the arrangement and on the basis of feedback from the life insurers, the Insurance Regulatory and Development Authority of India (IRDAI) has now extended the time period and the facility to all products. "Life Insurers are allowed to obtain the customer's consent through electronic m...
IRDAI issues exposure draft on compensating shareholder on merger of insurers

IRDAI issues exposure draft on compensating shareholder on merger of insurers

Finance
NEW DELHI: Regulator IRDAI has come out with draft regulations for determination of compensation to shareholders on merger of insurance companies, under which payment will be based on the residual value of assets. "...compensation to the shareholders whose rights against the acquiring insurer has been reduced...shall be paid based on the residual value of the assets," said the exposure draft on which the Insurance Regulatory and Development Authority of India (IRDAI) has invited comments from the stakeholders by November 20. The residual value, it added, will be equal to the value of the assets of the acquired insurer as on the day immediately before the appointed day, less the total amount of liabilities. Further, the compensation shall be "paid either in cash and/or in kind or partially ...